EUR/CHF firms.
- Considers swiss franc to be massively overvalued at present
- Current strength of swiss franc is threatening development of the economy
- Current strength of swiss franc increasing the downside risks to price stability in Switzerland
- Narrowing target range for 3-month libor from 0.00-0.75% to 0.00-0.25%
- Aiming for a 3-month libor as close to zero as possible
- Will very significantly increase the supply of liquidity to the swiss franc money market over the next few days
- Intends to expand banks’ sight deposits at the SNB from currently around CHF 30 bln to CHF 80 bln
- Will no longer renew repos and SNB bills that fall due and will repurchase outstanding SNB bills
- Since SNB’s last quarterly monetary policy assessment, the global economic outlook has worsened
- At the same time the appreciation of the swiss franc has accelerated sharply during last few weeks
- Consequently, the outlook for the swiss economy has deteriorated substantially
- Keeping a close watch on developments on the foreign exchange market
- Will take further measures against the strength of the swiss franc if necessary
